C7B-Accept Recommendation Cost Allocation Studies For The City Of Miami BeachIssue:
Recommendation
Administration To Enter into
With The Second-Ranked
I Shall the Commission Adopt the Resolution?
The City conducts cost allocation studies to determine the annual costs incurred in the City in the area
known as "South Pointe", formerly the South Pointe Redevelopment District Area funded by tax increment
revenues; as well and the cost of City services that are eligible to be funded from Resort Taxes. Further,
some of the Resort Tax eligible costs are within the South Pointe area, and, as a result, the studies
Resort Tax costs that are outside the South Pointe area. The may also other costs
allocation studies on an as needed basis.
On June 6, 2012, the Commission authorized the Administration to issue an RFP to solicit proposals
for cost allocation studies for the of Miami Beach. RFP No. 50-11/12 was issued on 11, 2012,
with notifications sent to over 40firms. This outreach resulted in the receipt of three from
Maximus Inc.; MGT of America, · Sequoia Consulting Group, Inc.
An Evaluation Committee appointed the Interim Manager reviewed the proposals, listened to
presentations and in question and answer sessions with each of the proposers, and discussed
the The Committee scored and ranked the three (3) proposals, and based on the published
evaluation criteria, the Committee ranked Maxim us, Inc. as the top-ranked firm and MGT of America, Inc.
as the second-ranked firm.
ADOPT THE RESOLUTION
Financial Information:
Source of
Funds:
1
2
Account
Professional Services Account
No. 011.9322.000312
City Manager
........................................................
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MIBE AGENDA ITEM ____ _
DATE _..:;___..:;__:__.::.....::::.::......
130
City of Miami Beach1 700 Convention Center Drive, Miami Florida 33139,
COMMISSION MEMORANDUM
Mayor Matti Herrera Bower Members of City
DATE: October 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER
PERTAINING TO THE RANKING OF FIRMS PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 50~11/12 FOR COST ALLOCATION STUDIES FOR THE CITY
OF MIAMI BEACH; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP-RANKED FIRM, MAXIMUS CONSULTING SERVICES,
INC., AND SHOULDTHE ADMINISTRATION NOT BE ABLE TO NEGOTIATE AN
AGREEMENT WITH THE TOP-RANKED FIRM, AUTHORIZING THE ADMINISTRATION
TO NEGOTIATE WITHTHESECOND~RANKED FIRM, MGT OF AMERICA, INC; AND
FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO AN
AGREEMENT UPON COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE
ADMINISTRATION.
FUNDING
Not to exceed annually Funding is available
1-9322-000312
ADMINISTRATION RECOMMENDATION
Adopt
KEY INTENDED OUTCOME
Professional
health maintain overall bond rating
BACKGROUND AND ANALYSIS
Account No.
Miami Beach to its service departments in
Enterprise through support nn''"'rl'"""
such as the City and Performance
nrr\\.tArflAnr Procurement, and departments, cost allocation
on a to document and costs these to operating
departments based on an Indirect Cost Allocation Study. These studies provide auditable for
appropriately offsetting costs in the General Fund by the appropriate costs to the
Special The was performed 2007/08 audited
costs.
In the cost costs in the
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October 24, 2012
City Commission Memorandum
Cost Allocation Studies
Page 2 of 4
City area known as "South Pointe", formerly the South Pointe Redevelopment District Area, funded
by tax increment revenues, as well and the cost of City services that are eligible to be funded from
Resort Taxes. Further, some of the Resort Tax eligible costs are within the South Pointe area, and,
as a result, the studies identify Resort Tax eligible costs that are outside the South Pointe area.
The Mayor and City Commission at its June 6, 2012, meeting, authorized the Administration to issue
an RFP for cost allocation studies for the City of Miami Beach. The purpose of the RFP was to
select a qualified consulting firm to conduct cost allocation studies for the City. These costs
allocation studies include Indirect Cost Allocation Studies, South Pointe Cost Allocation Studies, and
Resort Tax Cost Allocation Studies. The City may also require other cost allocation studies on an
as-needed basis.
The City intends to enter into an agreement with an initial term of three {3) years with the sole option
and discretion of the City Manager to renew for two (2) additional one (1) year periods.
RFP PROCESS
RFP No. 50-11/12was issued on July 11,2012, and the Procurement Division e-mailed, as well as
uploaded the RFP to Bid Net, sending notifications to over 40 firms. A non-mandatory pre-proposal
meeting to provide information and respond to questions from prospective proposers was held on
July 17, 2012. On the due date of August 6, 2012, three (3) proposals were received from the
following firms:
• Maximus, Inc.
• MGT of America, Inc.
• Sequoia Consulting Group, Inc.
On July 23, 2012, the Interim City Manager via Letter to Commission No. 191-2012, appointed an
Evaluation Committee (the "Committee"), consisting of the following individuals:
Ruth Cooper
David Lancz
Anna Parekh
James Sutter
Allison Williams
Alternate:
Barbara Knaub
Resident and Leadership Academy Graduate
Resident and Budget Advisory Committee Member
Real Estate, Housing and Community Development Director, CMB
Internal Auditor, CMB
Chief Accountant, CMB
Leadership Academy Graduate
The Committee convened on August 20, 2012, and was provided with an overview of the project,
information relative to the City's Cone of Silence Ordinance, and revisions to the Government in the
Sunshine Law. David Lancz was selected as the Committee Chairperson. The Committee listened
to presentations, and participated in question and answer sessions with each of the three (3)
proposers.
The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria
established in the RFP, for a total of 1 00 points, which was as follows:
• Qualifications of individuals assigned to work with the City 35 points
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City Commission Memorandum
Cost Allocation Studies
Page3of4
•
•
Consultant(s) experience and past performance with similar projects
Proposed Fees
• Methodology and Approach
Total
20 points
35 points
10 points
100 points
Additional points would have been allocated, if applicable, pursuant to, the following ordinances:
LOCAL PREFERENCE: The Evaluation Committee will assign an additional five (5) points to
Proposers, which are, or include as part of their proposal team, a Miami Beach-based vendor as
defined in the City's Local Preference Ordinance.
VETERANS PREFERENCE: The Evaluation Committee will assign an additional five (5) points to
Proposers, which are, or include as part of their proposal team, a small business concern owned
and controlled by a veteran(s) or a service-disabled veteran business enterprise, as defined in the
City's Veterans Preference Ordinance.
None of the three (3) firms met the criteria for the above noted Ordinances.
The Committee discussed each of the proposals and the corresponding presentations, and
proceeded to score and rank them as follows:
Ruth David Anna Jim Allison Ranking
Cooper Lancz Parekh Sutter Williams of Firm
Maxim us 93 95 (1) 99 (1) 89 (2) 6
MGT of 90 (2) 86 (3) 88 (3) 90 (1) 11
America
Sequoia 82 13
The Committee ranked Maximus, Inc. as the top-ranked firm, and further agreed to the ranking of
MGT of America, Inc. as the second-ranked firm, and Sequoia Consulting Group, Inc. as the third-
ranked firm.
Maximus, Inc., based in Tallahassee, Florida, is an international consulting firm and is the largest
management consulting firm in the United States that serves public sector clients. It is a publicly
owned company, traded on the New York Stock Exchange. Maximus has annual revenues in
excess of $930 million, and has over 8,000 employees.
Cost allocation plans and cost of service studies for state and local governments are the core
offerings of Maximus. The firm prepares over 1 ,500 cost allocation studies on an annual basis. The
project management team members are well qualified and have extensive experience. Maximus
has performed cost allocation studies for several public agencies in Florida.
MGT of America, Inc. is a national research and management consulting firm, based in Tallahassee,
Florida. The firm has a staff of over 80 employees, is privately-held, and dedicated to providing cost
consulting services for cities, counties, and special districts.
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City Commission Memorandum
Cost Allocation Studies
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MGT's project management team is experienced in providing cost allocation studies to several state
and local governments, and is well qualified. The firm has provided cost allocation studies for a
number of municipalities in Florida.
Sequoia Consulting Group, Inc. is incorporated in the state of Indiana, and is 100% employee
owned. Currently, Sequoia has over 25 staff members providing services to state and local
government clients. The project management team is well qualified, however, the firm has not
performed cost allocations studies in the state of Florida as of yet.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the attached
resolution, which recommends the acceptance of the ranking of firms pursuant to Request for
Proposals (RFP) No. 50-11/12 for Cost Allocation Studies for the City of Miami Beach, and
authorizes the Administration to enter into negotiations with the top-ranked firm, Maxim us, Inc., and
should the Administration not be able to negotiate an agreement with the top-ranked firm,
authorizing the Administration to negotiate with the second-ranked firm, MGT of America, Inc.; and
further authorizes the Mayor and City Clerk to execute an agreement upon the completion of
successful negotiations by the Administration
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134
RESOLUTION NO. _____ _
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER
PERTAINING TO THE RANKING OF FIRMS PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 50-11/12 FOR COST ALLOCATION STUDIES FOR THE CITY
OF MIAMI BEACH; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP-RANKED FIRM, MAXIMUS CONSULTING SERVICES,
INC., AND SHOULD THE ADMINISTRATION NOT BE ABLE TO NEGOTIATE AN
AGREEMENT WITH THE TOP-RANKED FIRM, AUTHORIZING THE ADMINISTRATION
TO NEGOTIATE WITH THE SECOND-RANKED FIRM, MGT OF AMERICA, INC; AND
FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT UPON COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE
ADMINISTRATION.
WHEREAS, the City of Miami Beach provides administrative support to its service
departments in the General Fund, Enterprise Funds, and Special Revenue Funds, through
administrative support departments such as The Manager's Office, Finance, Human Resources,
Budget and Performance Improvement, Procurement, and other departments; and
WHEREAS, the City has conducted prior cost allocation studies, on a periodic basis, to
document and allocate the costs of these services to operating departments based on an Indirect
Cost Allocation Study; and
WHEREAS, on June 6, 2012, the Mayor and City Commission approved the issuance of
Request for Proposals (RFP) for cost allocation studies for the City of Miami Beach; and
WHEREAS, on July 11,2012, RFP No. 50-11/12 was issued and notices were sentto over
40 firms; and
WHEREAS, on the specified due date, the Procurement Division received responses from
Maximus, Inc.; MGT of America, Inc.; and Sequoia Consulting Group, Inc.; and
WHEREAS, on July 23, 2012, the Interim City Manager via Letter to Commission No. 191-
2012, appointed an Evaluation Committee (the "Committee"), consisting of the following individuals:
Ruth Cooper-Resident and Leadership Academy Graduate;
David Lancz -Resident and Budget Advisory Committee Member;
Anna Parekh -Real Estate, Housing and Community Development Director, CMB;
James Sutter-Internal Auditor, CMB;
Allison Williams -Chief Accountant, CMB; and
WHEREAS, the Committee convened on August 20, 2012, and was provided with an
overview of the project, information relative to the City's Cone of Silence Ordinance, the Government
in the Sunshine Law, listened to presentations, and participated in question and answer sessions
with each of the three (3) proposers; and
WHEREAS, the Committee scored and ranked each proposal pursuant to the evaluation
criteria established in the RFP:
135
and
Proposed Fees ~ 35 points;
-10
America, Inc. as
WHEREAS, the concurs
and
as top-ranked and MGT of
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor City Commission
hereby accept the recommendation the Manager pertaining to the ranking proposals
pursuant to Request for Proposals (RFP) No. 50-11/12 For Cost AHocation Studies for the City
Beach; Administration to enter negotiations with top-ranked
Inc., and should the Administration not able to negotiate an with the
ranked firm, authorize the to MGT of America,
Inc.; and further authorize the and Clerk to execute an agreement the completion
of successful negotiations by the Administration.
PASSED AND ADOPTED this ___ day of-------' 2012.
ATTEST:
Rafael E. Granado, City Herrera Bower, Mayor
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